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Friday, March 29, 2024

Thailand’s focus on wealthy tourists will not benefit small businesses

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With the reopening on Nov. 1, the government has made no attempt to welcome all travellers who want to return to Thailand. Instead, they’ve focused heavily on attracting the “right” tourists, trying to get wealthy investors and retirees to bring money to Thailand, while often putting aside the moderate and budget-conscious tourists that have been the backbone of their lives for years. of the Thai tourism industry.

The proposed long-term visa package is aimed directly at only 4 types of travellers:

  • Wealthy international tourists with assets in multiple countries worth at least $1 million who need to invest at least $500,000 (16.5 million baht) in government bonds.
  • Wealthy retirees over 50 who need a large enough pension fund to cover their living expenses in Thailand and who have to invest a minimum of $250,000 in government bonds.
  • Digital nomads or employees of high-quality foreign companies who want to work remotely from Thailand.
  • Highly qualified specialists who work as experts in selected industries.

In fact, Energy Minister Supattanapong Punmeechaow explicitly stated that instead of trying to attract 40 million travellers like the pre-Covid-19 tourist numbers, they only want to attract 1 million large-scale spending that they believe will generate the same revenue.

In 2019, tourism accounted for 11.4% of GDP, about 2 trillion baht, meaning the new government plan assumes that each of these high-roller tourists will spend about 2 million baht while vacationing or living in Thailand.

Many entrepreneurs, however, are frustrated and angry at being let down by the government’s lofty plan to allow luxury and affluent businesses to thrive, but any businesses targeting middle-class and budget travellers will see virtually no income. A focus on high-end tourists will make money for chains and high net worth real estate but will do little or nothing to boost the economy for the average Thai person or business.

Bali recently announced similar intentions to ban backpackers if the country reopens to implement a tourism redesign and attract higher-spending tourists. Movements like these in Indonesia and Thailand could spark a tourism boom for countries like Cambodia, where populations are approaching an 80% vaccination rate, far more than Thailand’s 38% which could potentially welcome the millions of backpackers and budget travellers with open arms who have been the bread and butter of Southeast Asian tourism for years.

Yet many governments see the Covid19 pandemic as a reset button, an opportunity to start over and reshape their image and reputation, like a child’s first day at a new school in a new city. But with the reopening of countries around the world and many negative opinions about the complicated return procedure for tourists to Thailand, now may not be the time to choose.

Many also suggest that the idea that fewer but better-quality tourists benefit the environment, as the Energy Secretary suggested, wealthy tourists actually do much more damage to the environment, as luxury accommodations and transportation use far more water and resources than backpackers. who share buses and dormitories.

The affluent tourists who enjoy cocktails and meals at their resort, therefore, invest much less money in the local economy, while budget travellers tend to shop in local markets and dine in local restaurants, directly contributing to small and medium-sized businesses most affected by Covid infection.

Many in the tourism industry are eagerly awaiting the growth of the international tourism industry, but want the government to stop targeting wealthy travellers who don’t necessarily benefit the local economy and focus on throwing a wide net around attracting the most tourists of all demographics.

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